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Reserves for Insurance Losses and Loss Adjustment Expenses
 12 Months Ended
Dec. 31, 2021
Short-duration Insurance Contracts, Liability for Unpaid Claims and Allocated Claim Adjustment Expense, Net [Abstract]  
Reserves for Insurance Losses and Loss Adjustment Expenses Reserves for Insurance Losses and Loss Adjustment Expenses
The following table shows incurred claims and allocated loss adjustment expenses, net of reinsurance.
For the years ended December 31, ($ in millions)
December 31, 2021 ($ in millions)
(unaudited supplementary information)Total of incurred-but-not-reported liabilities plus expected development on reported claims (a)Cumulative number of reported claims (a)
Accident year2012201320142015201620172018201920202021
2012$435 $430 $423 $423 $423 $422 $422 $421 $421 $421 $— 772,560 
2013376 365 370 370 369 368 368 368 368 — 672,279 
2014390 389 388 388 388 388 388 388 — 525,298 
2015274 271 272 272 272 272 272 — 342,280 
2016326 327 328 328 328 328 — 476,056 
2017310 314 315 315 315 — 481,742 
2018271 272 272 273 — 506,423 
2019303 306 305 — 541,936 
2020343 339 1 493,097 
2021243 24 471,444 
Total
$3,252 
(a)Claims are reported on a claimant basis. Claimant is defined as one vehicle for GAP products, one repair for VSCs and VMCs, one dealership for dealer inventory products, and per individual/coverage for run-off personal automotive products.
The following table shows cumulative paid claims and allocated loss adjustment expenses, net of reinsurance.
For the years ended December 31, ($ in millions)
(unaudited supplementary information)
Accident year2012201320142015201620172018201920202021
2012$391 $412 $416 $418 $419 $421 $421 $421 $421 $421 
2013347 364 366 368 368 368 368 368 368
2014369 388 388 388 388 388 388 388
2015252 272 272 272 272 272 272
2016302 327 328 328 328 328
2017289 315 315 315 315
2018245 273 273 273
2019278 306 305
2020313 339
2021213
Total$3,222 
All outstanding liabilities for loss and allocated loss adjustment expenses before 2012, net of reinsurance
9
Reserves for insurance losses and allocated loss adjustment expenses, net of reinsurance
$39 
The following table shows the average annual percentage payout of incurred claims by age, net of reinsurance. The information presented is unaudited supplementary information.
Year123456789
Percentage payout of incurred claims
92.5 %6.9 %0.3 %0.2 %— %0.1 %— %— %— %
The following table shows a reconciliation of the disclosures of incurred and paid claims development to the reserves for insurance losses and loss adjustment expenses.
December 31, ($ in millions)
202120202019
Reserves for insurance losses and loss adjustment expenses, net of reinsurance
$39 $37 $32 
Total reinsurance recoverable on unpaid claims81 90 88 
Unallocated loss adjustment expenses2 2 2 
Total gross reserves for insurance losses and loss adjustment expenses$122 $129 $122 
The following table shows a rollforward of our reserves for insurance losses and loss adjustment expenses.
($ in millions)202120202019
Total gross reserves for insurance losses and loss adjustment expenses at January 1,$129 $122 $134 
Less: Reinsurance recoverable90 88 96 
Net reserves for insurance losses and loss adjustment expenses at January 1,39 34 38 
Net insurance losses and loss adjustment expenses incurred related to:
Current year259 360 321 
Prior years (a)2 3 — 
Total net insurance losses and loss adjustment expenses incurred261 363 321 
Net insurance losses and loss adjustment expenses paid or payable related to:
Current year(229)(328)(295)
Prior years(30)(30)(30)
Total net insurance losses and loss adjustment expenses paid or payable(259)(358)(325)
Net reserves for insurance losses and loss adjustment expenses at December 31,41 39 34 
Plus: Reinsurance recoverable81 90 88 
Total gross reserves for insurance losses and loss adjustment expenses at December 31,$122 $129 $122 
(a)There have been no material adverse changes to the reserve for prior years.